Michael Saylor: Even if Bitcoin plummets 98%, the company will not face liquidation risk

Odaily reported that Michael Saylor, the founder of Strategy (formerly MicroStrategy), said in an interview that the company has acquired most of its Bitcoin through equity. For example, we currently have Bitcoin worth $45 billion to $50 billion, while our debt is only $3 billion, and this debt is all secured by assets. In fact, the Bitcoin we own is 15 times the amount of our debt. Moreover, our debt is non-recourse and has a term of over four years. Even if Bitcoin crashes 98%, the company will not face liquidation risk. The company owns permanent capital. Furthermore, the company will not lend or pledge Bitcoin to earn interest in the future, and believes that the smartest approach is to issue securities backed by Bitcoin. Regarding whether MicroStrategy will develop its own Bitcoin second-layer network or support existing Bitcoin second-layer solutions, Saylor said that he believes they will first observe the market development. You can view MicroStrategy as already operating on the third layer of Bitcoin. The second layer is open protocols like Lightning, while the third layer is proprietary protocols like Binance, Coinbase, or MSTR. They have a third-layer architecture with daily transaction volumes reaching billions of dollars. They have also recently launched Strike, another third-layer protocol, with daily transaction volumes reaching tens of millions, or even over $50 million. These are the security layer or third-layer protocols, which are already very powerful and have attracted a certain type of investor. In the future, second-layer solutions like Lightning may succeed, but Saylor believes the real trillion-dollar opportunity is currently in the third layer. Additionally, Saylor revealed that he does not hold any other cryptocurrencies. About four years ago, he publicly disclosed that he held 17,732 Bitcoin, with an average purchase price slightly below $10,000 per Bitcoin. He cannot recall the exact number, but this information can be found in his public tweets. Since then, he has bought more, but has never sold any. Therefore, he now holds more Bitcoin than he did at that time, but he has not publicly disclosed the exact increase. (Wu Blockchain)